As you know FCOC hired lobbyist firm Rick Watson & Associates to pursue legislation in Tallahassee that, if approved, would give sales tax relief to all Florida crane owners. This effort is being pursued vigorously right now as the 2015 Tallahassee legislative session begins formulating bill language. As part of FCOC’s effort to support Rick Watson & Associates we must provide certain data about Florida’s crane market. I need your help in getting this data and information pulled together. I am not asking for your internal costs or any confidential data. CONFIDENTIALITY will be strictly adhered to. Trade name, logo’s model designation etc., will not be used or published. It’s very important that information we use and provide can be substantiated should we be challenged during the legislative process. The requested information outlined below is to be used in the event Florida legislators decide to split out the sales price of a crane that is propelled by a motor vehicle like chassis. That example would include Truck Crane, All Terrain Crane, Boom Truck that require registration for issue of a license tab or plate. In this case FCOC is looking for the sale price percentage (%) split between crane components (rotating structure with operator cab, boom, jib, engine and gearing) and vehicle chassis components (frame, running gear, cab). FCOC has to present what financial impact a tax cut or tax relief law has on potential incoming tax revenue.

Could you complete the attached CONFIDENTIAL survey:

Manufacturers Florida Sales Tax QuestionnaireWhat percentage of the total cost of each crane type is chassis vs. crane?

Why Florida Needs A Sales Tax Exemption on Purchase of Building Cranes

ECONOMIC HARDSHIP:

Florida’s non-residential construction industry is one of the last areas in the US to start recovering from the 2007-2008 recession- an 8 year lag

Many areas of Florida are still well below the 2007-2008 levels of construction activity

Many Florida crane owners went out of business or had to sell off portions of their underutilized crane fleet to reduce debt so as to survive.

Fewer working cranes have caused an exodus of skilled and trained crane and rigging personnel who have left the Florida crane industry.

Contiguous states exempt the purchase of building cranes from sales tax putting Florida at a competitive disadvantage.

GOOD PAYING JOBS ARE CREATED FOR EVERY CRANE THAT IS ADDED TO EXISTING FLEETS IN FLORIDA INCLUDING:

Certified crane operators

Qualified signal persons

Qualified Assembly/Disassembly Directors

Qualified Lift Director

Qualified Maintenance and repair technicians

Additional qualified tractor/trailer drivers who transport crane components around Florida from one job site to another.

SAFETY CONCERNS: Cranes manufactured starting in 1995 are much safer due to technology features designed and built into them. Cranes older than 1995 do not have the newer safety devices designed and installed by the crane manufacturer. Today’s certified crane operator is trained, qualified and certified on joy stick crane controls, electronic overload devices and other safety features. RECOMMENDATION: Pass a sales tax exemption for a two years for new and used Crawler, Rough Terrain, All Terrain, Boom Trucks, Truck Cranes and Tower Cranes. The exemption would apply to the cost of the crane equipment on the vehicle. John Wessel will contact crane manufactures and determine what % of sales price represents crane components versus vehicle chassis.